they are among the biggest gainer and biggest dividend increases. >> we will be back on the market in 30 minutes. "market makers" is up next. >> live from bloomberg headquarters in new york, this " with erikmakers schatzker and stephanie ruhle. >> cisco's big beat. the stock is searching this morning. we will talk to the ceo john chambers and ask him how he did. life in the fast lane. decision- fcc nears a to change the internet forever and it looks like a big win for service providers like verizon and comcast. they may be able to charles -- charge websites like amazon for preferential treatment. showdown -- not talking brazil

versus germany but nike versus adidas and a multibillion-dollar market is what is at date. "ou are watching "market makers here on bloomberg television. i'm erik schatzker. stephanie ruhle will be along in just a little while. a little bit later this hour. right now, in lower manhattan, more than 12 years after the worst terrorist attack in this nation's history, the national september 11 memorial museum is being opened. you can see what is happening. this is happening in new york city right now. the museum will be dedicated in a few short minutes by president. survivors and family members of the news will be speaking. we will take you back there as soon as the president starts. anwill also bring you interview with former new york city mayor michael bloomberg, chairman of the museum and also the founder of our parent company. if you would like to watch the entire ceremony it is streaming live on our website, bloomberg.com/tv.

to bring it up to speed, time for the newsfeed, the top business stories from around the world. shares of walmart dropping. profit missed analyst estimates. sales of walmart's u.s. stores the first quarter. more recalls for general motors. recalling 2.7 million vehicles for a variety of defects. no deaths have been linked to these problems. gm is already struggling with fallout from a faulty ignition switch which led to the recall of 2.5 million cars. from hedge fund billionaire david pepper, saying the market is kind of dangerous and this is the time to hold onto some cash -- david tepper. he was the top hedge fund manager last year. make him an estimate of $3.5 billion. could be turnaround time for cisco. shares are up almost eight percent.

the networking giant put up better than expected sales and profit numbers for the most recent quarter and forecasts show increasing improvement. john chambers, the ceo, is live from cisco headquarters in san jose, california. good to see you again. >> it is a pleasure. i have not seen you since the .orld economic forum in davos >> that is true. i would like to start with the big picture. so many people see cisco as a bellwether for quite a while. several quarters you have been reporting good growth in your u.s. business. how much of that reflects underlying strength in the u.s. economy that some people might not detect? came right to the bottom line. we were very successful in the u.s. we grew seven percent year over year. our small business grew 10%. enterprise business grew 10%. those are usually a very good indicator of the economy looking

out to or three quarters. if you go back to august of 2012, those businesses turned out to high single-digit. if you bought into dow jones at that time, you would have done very well. our view of the u.s. economy is the first quarter is more the exception. probably 2.5% to three percent growth for the nine months after the first quarter. we feel good about the u.s.. it's got to be the engine for the rest of the world. >> you also noted a number of macro economic challenges on the conference call last night. is there any light at the end of the tunnel for emerging markets? and specifically, the country like russia, for example, or brazil? markets, iging think, will continue to be a challenge for several quarters. we signaled the downturn almost a year ago. we saw them suddenly stop ordering, like someone turned off a light switch. the good news is i and you are seeing it level out, but not a very good number. we are seeing, as you alluded

to, more variation. in china, down eight percent growth, india, down one percent, mexico, down three. those three looking better. we saw both brazil and russia down in the high 20's. if you watch the gdp expectations for both brazil and russia they are down to the three points versus six months ago. we feel good with our competitive position in the market. we think we are starting to gain market share in many areas. but this is just one more step toward returning to growth. >> china down eight percent does not sound like a -- an economy that will grow 7.5% to me. it doesn't sound like that to you? >> i have been in china for 30 years. extremely well-run country. i think our issues in china are more unique to cisco. i think they will come in on the numbers. i think they will be close to the expectations. learnu will see us slowly back the trust of the chinese people in terms of growing our business. >> in terms of russia, is your

business at all sensitive to the sanctions placed on russia by the u.s. and the du or perhaps sensitive to developments that may take place vis-à-vis ukraine? i think our business is affected anytime economies slow down. so that is the part of being in emerging markets. the majority of the emerging markets, the non-bric's versus mexico, had an improvement. and russia we did fit the business down in the high 20's, that is an example when the economy slows we are affected. are we affected by any of the regulations question mark no, we are not. >> you seem to my ear and others decidedly more upbeat on last night conference calls and you have been for a while. is there something beyond your reported numbers and guidance that you offer that is making you feel good? our strategy and vision are working the way we said it would.

we have our major market transitions right on the internet of everything. something called application-centric infrastructure, going from the cloud bank to the networks. datae doing well in the centers. you see improvement in many areas like collaboration with has been slow for a while. , we saw -- business progress there. cash flow was great at $3.2 billion. it gave $3 billion back to shareholders. it takes you several quarters once you get surprised on the market like we did in emerging markets, or once we do disrupt their sales like we did in higher end products which positioned us in the long run. by the way, the higher end products are starting to look good again. just a very solid quarter on our way back to growth. >> you mentioned you and i have not seen each other since switzerland at the world economic forum in january. you mentioned then that cisco would raise its dividend yield to above three percent, which is more or less where you are now.

what did you have in mind? what's we will continue to give -- >> we will continue to give back free cash flow to our shareholders. this year we have already given back a billion dollars in share repurchase and $3 billion in dividends. i think you will continue to see us be aggressive in this area. that is 140% of free cash flow. ands on our shareholder value creation. we are very pleased with how we together are sharing the success with shareholders. >> some worry whether 140% of free cash flow to sustainable. >> is it. what it was with the right time to be buying stock in the market. we bought our stock at $22 per share on average this last quarter. and i think you're seeing the appreciation for our shareholders and stock as well. you want to buy when the stock is lower and support the stop for your shareholders and show confidence. you also want to show cash flow at a time that many people are not getting a good return on their investments.

so a three percent dividend, and the stock is looking pretty good. we are proud of what we have done for our shareholders and we want to continue to stay focused on doing better. >> you have been a very of book an advocate for corporate tax reform. as you are well aware, inversions are a very hot button issue in washington right now. has cisco ever considered a tax version deal using m&a to move incorporation effectively overseas? would you consider such a deal? we are an american company. i am proud to be an american company. the first time this last quarter our headcount in america dropped below 50% of our total headcount, and it is all because of the tax problem. we created a tax system that is 30 years old. we are in next wording country. we should be encouraging every company that is making foreign profits and pays taxes overseas to bring it back into the country, just like any other developing country in the world does. so our tax system here is causing us to lose jobs. it is causing companies to look

at other tax options that are, in my opinion, not good for our country long-term. we've got to fix this. we've got to quit talking about it. and we ought to encourage people to bring back profits overseas -- from overseas. we want to bring a back to america and invest in america. we are missing a $1.2 trillion opportunity to stimulate the economy. if the government doesn't move you will see a number of companies pursue other options in terms of how they look at locating in america and other options in terms of where they see their growth. that is not good for our country. summarizing, however, we are an american company am proud to be an american. >> a few for your time. john chambers, chairman and ceo of cisco with us from corporate headquarters still in san jose, california. another company we are watching this morning is walmart. you can blame it on the weather, perhaps. the world's largest retailer said sales and profits missed analyst estimates. senior markets correspondent julie hyman is following the story.

the weather story -- do we believe it question mark what's of course, we believe it, at least in part. the company had about 200 stores that were closed at some point because of the weather. it certainly was a factor. it was a factor with all the retailers. the question is, what else is going on with walmart? the weather is done. it is not cold anymore, for the most part. although they were reporting in a conference call it was 40 degrees in bentonville, today. >> just hang on one minute. i promised everyone we would go back to lower manhattan to give the president's remarks at the inauguration of the national september 11 museum and the president has just stepped up to the lectern. let's watch and listen. [applause] mayor bloomberg, governor cuomo, honored guests, families of the fallen. after thewful moments

south tower was hit, some of the injured totaled in the wreckage of the 78th floor. thefires were spreading, air was filled with smoke. it was dark. and they could barely see. if there was no way out. came a voice. lm, saying he had found the stairs. his 20's, strong, emerged from the smoke and over his nose and mouth he wore a red handkerchief. extinguishersfire to fight back the flames.

he tended to the wounded. he led those survivors down the stairs to safety. and carried a woman on his shoulders down 17 flights. back up all back, of those flights and then back down again, bringing more wounded to safety. until that moment when the tower fell. .hey didn't know his name they didn't know where he came from. but they knew their lives had red saved by the man in the bandanna. again, mayor bloomberg, distinguished guests, mayor deblasio, governors christie m cuomo, and the families and survivors of that day, to all of

those who responded with such courage, on behalf of michelle and myself in the american people, it is an honor for us to join in your memories. to recall and to reflect. but above all, to reaffirm the true spirit of 9/11. love. compassion. sacrifice. forever inrine it the heart of our nation. michelle and i just had the opportunity to join with others on a visit with some of the survivors and families, men and women who inspire us all. and we had a chance to visit some of the exhibits. and i think all who come here will find it to be a profound

and moving experience. i want to express our deep gratitude to everybody who was involved in this great undertaking, for bringing us to this day, for giving us this sacred place of healing and of hope. , thist this memorial .useum, we come together we stand in the footprints of by thehty towers, graced rush of eternal waters. we look into the faces of nearly 3000 innocent souls, men and women and children of every race, every creed, from every corner of the world. names and touch their hear their voices and glimpse

the small items that speed to the beauty of their lives -- speak to the beauty of their lives. a wedding ring, a dusty helmet, a shining badge. story, soll their that generations yet unborn will never forget. of coworkers lead others to safety, of passengers who stormed the cockpit, of men and women in uniform who rushed into an inferno, our first responders who charged up those stairs. , generation of service members our 9/11 generation, who have served with honor in more than a decade of war. a nation that stands tall and

united and unafraid. because no act of terror can match the strength and character of our country. at the great wall and then rock embraces us today, nothing can ever break us. nothing can ever change who we are as americans. and that september morning, allison lost her son. months later, she was reading a newspaper, an article about those final minutes in the .owers survivors recounted how a young man wearing a red handkerchief had led them to safety.

and in that moment, allison knew. ever since he was a boy, her son had always carried a red handkerchief. her son wells was the man in the red bandanna. wells was just 24 years old. with a broad smile and a bright future. he worked in the south tower on the 104th floor. he had a big laugh, a joy of life, and dreams of seeing the world. he worked in finance, but he had also been a volunteer firefighter, and after the planes hit, he put on that bandanna and spent his final moments saving others. three years ago this month,

after our seals made sure that justice was done, i came to ground zero and among the families here that they were allison crowley. and she told me about wells and his fearless spirit and she showed me a handkerchief like the one he wore that morning. and today as we saw on our tour, one of his red handkerchief is on display in this museum. and from this day forward, all of those who come here will have a chance to know the sacrifice of a young man who, like so many, gave his life so others might live. lost live on in us. in the families who love them still. in the friends who remember them

always. nation that will honor them now and forever. honor to it is my introduce two women forever bound by that day, united by their determination to keep alive the true spirit of 9/11. mother allison and one of those he saved. [applause] >> president obama speaking at the opening of the national september 11 two museum in lower manhattan. our white house correspondent phil mattingly was listening as well and joins us. to septemberk back

how that event and defined the presidency of george w. bush. to what degree has september 11 defined the presidency of barack obama? >> to a large one, erik. it is difficult to quantify but you here in the poignant remarks from the president just now that this is an individual that no longer on the policy side but also on the personal side is still deeply affected on a very regular basis by the events that happened in the morning of september 11. i think from a personal perspective, it very much is set -- very much so changed the way he approaches national security. from the policy side, look at the main issues the president has been dealing with, particularly in the last probably eight to 10 months on privacy issues, surveillance. you've got two wars. all of that came from 2001, september 11. so while he wasn't in office at

that time, not even in the senate setting yet, without question that this is a defining moment over the past 12 years and it has been a defining moment for a president who was not even their when it occurred. onthat said -- his views matters of privacy and security have changed since he was a senator and since he came to office. what do you have any idea it was the president was exposed to related directly to or directly to september 11 that changed his thinking? >> it is difficult because we haven't heard from the president on this. we don't know exactly if there was something specific or just kind of a broad compilation of things that made him shift his focus, particularly on some of the intelligence collection programs that are in place that we are now, because of edward snowden, ran so deep. i think if you talk to people in the intelligence committee and former bush administration officials who watched their president go through this as well -- there is a recognition that on that first or second day

of office, whenever you get that first threat briefing, whenever you see the things directed at the united states in a negative and dangerous way, that can have a very deep impact on a psyche. so while we don't know specifically from the president himself, i think that is the assumption a lot of officials may, at least in the intelligence community. >> thank you so much. we may in fact have to wait for his memoirs to find that out. wasgh mattingly -- that phil mattingly. coming up, we will hear from the chairman of the 9/11 museum, former new york city mayor michael bloomberg. ♪

>> he succeeded rudy giuliani as mayor of new york city shortly after the deadly september 11 attacks on this town. in a few minutes you will hear from the chairman of the 9/11

museum, former new york city mayor michael bloomberg. ♪

you are watching live the dedication of the national 9/11 museum here in new york city. it is half named in lower manhattan. a few minutes ago we heard from president obama himself, chris christie, governor of new jersey, also spoke there it -- also spoke. event.g for those who have not given it thought, it is worth remembering what happened in the city 12 and a half years ago. i'm erik schatzker. >> i'm stephanie ruhle. the roadave been on almost a week but as a new yorker i was just downtown in the financial district moments

ago. it is a day, as a new yorker, he deftly want to be here. earlier this week i had a chance to sit down with former new york city mayor michael bloomberg, chairman of the september 11 memorial museum. he spearheaded this creation during his time in office. he is the founder of bloomberg lp, the parent company of this network. he and i had a chance to sit down this week about some of the challenges of building a museum. >> somebody had to pull it all together. we had some great people who made enormous progress in making commitments for $150 million, and a lot of work had been done with the port authority and the states of new york, new jersey, city, federal government. sort ofroversy had taken over and became the story itself rather than what we were going to build and why we wanted to build it. as the mayor, it was the logical thing to do. >> how did you cut the cost and get everyone on the same page? what you had to make a decision

as to -- >> you had to make a decision of what you are going to build, with the budget was. it wasn't that people were cooking the books and people saying, let's waste money. it was that everyone had a different view of what we should build and in that case, forecasting is virtually impossible. and you don't start out by saying, you have an unlimited budget, use it and then we will see what it costs. you can do that in the real world. we knew we had to raise an enormous amount of money privately. and private donors wanted to know that their money would be well spent and they wanted to know it was going to get done. you needed somebody to say -- look, guys, you can't all do everything. we can't include every idea. we can't, in fact, come up with a plan that will please everybody. that is just not the real world. we have a democracy. you want to listen to every body but then somebody has to make a decision and decisions are made by executives. >> how has your relationship

with the families been in the last several years? have you gotten a tremendous amount of respect? , vast bulk of stakeholders on the families' side think what we have done has been the right thing to do. not all of them are on board, but i think after the memorial was delivered, after they saw it , after they recognize the power in the names, they all became converts. and when you have a success, it is easier to do the next one because you have credibility. >> what is the most important part of the memorial you want exhibited? my children are being raised in new york city but they were not alive when september 11 happened. what story do you think should be told? >> the story that there were a very small handful of people who try to take away your children's right to say what they wanted to say, to believe in what they wanted to believe, to associate with whomever they wanted to

associate with, to be in charge of their own destiny, and that the world came to our aid when and cowardly act took place in fact democracy has come out then it because of this was going into it. >> and the world war ii memorial took 40 years to get done. would you say this is speedy? >> i think history will show that given the complexity of the construction process, given the complexity of the governmental process, they were dealing with the families and making sure we were respectful and try to recover to the extent humanly possible any remains and identified those to make sure that we could understand. going through a recession, how we can make sure there was economic activity down in this area. because you have to have an economy for those left behind.

and i think when you pull all of that together and you write the book, it will be a test case in the conclusion will be, it was really quite amazing. nothing of anything as complex as this from any point of view has ever been done, that i know of, in the short period of time. >> what is the most social element of the museum? of thee, when i saw one fire engines and i wondered what happened to the guys on that fire engine. it brings you back to human beings. i did not know very many people who died. a woman's husband was running the port authority at the time -- to where three of my employees who i did not know, young people, who died. the fun of a guy i worked with died. -- the son of a guy i worked with died. ideasall about people and and freedoms, and it is the freedoms for those left behind. -- and igo we owe

deceasedowe to the that those they left behind have a feature and have what we want everybody in america. >> where were you on 9/11? what might -- >> my campaign headquarters. he was voting day. the election was canceled and rescheduled. reporter froma street toted on 82nd my campaign headquarters on 56th street and i was there reading a newspaper and having a cup of coffee because there was nothing to do -- already finished campaigning -- and somebody said, look, a small plane hit the world trade center. across could see a gash the whole building and i thought, that is not a small plane. the tragedy of the event, i don't think you stop to think about -- how do you get those people out of the building? as soon as the second plane took

place there was not a surprise that there was the pentagon and shanksville as well. it was obviously a concerted and coordinated attack on freedom. >> that morning did you think at all, i don't want to be mayor of the city? >> of course not. because there was more of a need than ever before. you become mayor because you want to make a difference, and the more things need to be fixe decided, it makes the challenge all the greater. and if you are doing it for the right reasons, to try to make a difference, you make a bigger difference -- you have a chance to make a bigger difference. >> that was former new york city mayor and founder of bloomberg lp, michael bloomberg, the chairman of the museum and memorial site. he was not in charge of this until 2006. this was a time when the project was riddled with problems. there were many individuals and

companies willing to write checks, but i felt like, is this project ever going to get done? big question. how do you take something that is so easily politicized and manage it in a more sensitive, more responsible way? >> well, they did it. we will be back with more in just a few. you're watching "market makers" on bloomberg television. ♪ it all seemed and how powerless it makes us all feel. but what this museum does is allow us to see that we absolutely can affect each other's lives. ♪

>> you are watching "market makers" on bloomberg television. i'm erik schatzker with stephanie ruhle once again. about going on for your feet. the two biggest companies and stored -- sportswear fighting to own the stock market. an inside look at how mikey and adidas plane to make billions at the world cup. and adidas plan to make

billions at the world cup. >> saturday morning in germany. my god son paul. he is playing soccer for his club team and so are a lot of kids in the soccer assessed country. a broades in a town and goalie ofrt from the the national team. sportswear companies are competing for their love, too. adidas, the second-largest ft. worth company in the world artly owns his team bayern munich. he's the senior vp of global football. >> it is part of our dna so everything cards with soccer back in the days, our founder invented the first shoe for the

german team to win the world cup. talking about germany by the unexpected win at the 1954 world cup in switzerland. it was the first televised world cup and still a big deal in germany and at adidas. --i think this is so rooted soccer is so rooted in the company. >> for the last 60 years adidas has been the world leading brand in football, with the rest of the world call soccer. world cup like this one is very good for the company. this is what the deed is called an event year. what does it mean? record level of sales. for the first time we will break $2 billion -- 2 billion euro barrier. >> about $2.7 billion. it starts by putting national teams in adidas. this summer in brazil, nine out of 32 teams will be wearing adidas. federations like

germany, colombia, argentina, spain, japan, mexico. they are all a great showcase for us as a brand to the world. >> adidas also sponsors fifa, which runs the world cup. but nike sells soccer gear, too, and now almost as much as adidas. >> football always had these magical moment. >> trouble -- trevor edwards's president. 1994, our business was about $40 million and today it is over $2 billion. outsells in basketball, running, and american football but adidas go out outsells in soccer. adidas made $2.4 billion in soccer. number one is the sport around the world and to be

a truly global brand we had to compete in football. that is the reason why we have such a commitment to the sport and we committed ourselves to be 365 days acompany year. >> that strategy is beginning to work for nike. national leagues in germany and u.k. reach a global audience world around and adidas world cup sponsorship every four years of not mean it used to. nike is drawing adidas into a simpler and more expensive game -- boxer as many teams and players as possible. >> when they see great moments of brilliance for most players -- >> it does not mean nike ignores the world cup. nike is sponsoring 10 national teams, one more than adidas. and nike has made active that shows some kind of global soccer event -- they never mention the world-- the word fifa cup. soccer marketing is simple. make sure -- make shoes and make sure heroes wear them.

if he ends up being the keeper of the winning team members ill, paul, jacob, and adidas will all have a very good deal. >> there you are, the cover story of the new issue of "bloomberg businessweek" available on bloomberg.com. the author of the story joins us now. how important is world cup to adidas? ,learly nike has so many brands so many units. the adidas? has a lot of different brands. the only thing that holds it together as a company is soccer. >> and the ceo loves soccer. >> they all love soccer. it is still a very german company. they are based in germany. so they have a deep emotional attachment to soccer, but they also have a clear financial attachment which means adidas makes more of its sales in western europe where soccer is the only sport that matters. whereas nike still has the base

in the u.s. where they can sell a lot of different sports. the easier way to put it is adidas needs soccer but nike just wanted. >> they all put the money and i'm the world cup is over, how do we evaluate who spend too much and who lost out? >> if brazil wins, a clear win for nike and it may override all the money adidas put into sponsoring the world cup. adidas has been the official sponsor since 1970. it used to be an incredible asset because the world cup used to be the only global tournament. now the barclays premier li keqiang should is a global event. sligaist leade -- bunded is a global event. the world cup is not the only tournament. >> when does adidas wake up to the idea that the return on that asset called world cup sponsorship is either not relevant anymore? >> they will not. they have until 2032 wake up. until 2030.newed

>> how much does it cost them? what are the cost to be the sponsor of a world cup? >> gosh, it is in the hundreds of millions per cycle. i need to get the numbers. >> the total value of the contract is in the billions. >> i need to get the numbers but it is in that nor -- order of magnitude. >> hold on -- help me understand. you have the this -- you have adidas, nike -- and puma, hold on. stand?h money does puma how much money -- because they are spending nothing -- how far behind are they? >> so you are talking about three different markets. the first market is, who is selling what? together nike and adidas are 70% a alone isket and pum six percent. in the last world cup, puma was the single biggest sponsor

because you grow market share by sponsoring more teams. the problem is -- and this is increasingly problem for anyone wanting to get into the business -- all the biggest contracts are locked down. nike's biggest challenge 20 years ago was wrestling away a couple of significant contract from adidas. they just renewed france, which is a mediocre team right now and they paid more than anyone has paid for a national contract ever. problem is they take off all the teams in the bottom 22 in a global tournament that no one else wants. you look at the difference between the top 10 teams and the bottom 22 it has grown exponentially since 1998 since everybody wants the top 10 teams and puma can't get them. enbaums -- whatnne was that? those warm-up suits were hot.

ae you aware louise wore sergio warm-up suit for the entire 1980's? thank you so much. excuse toi use any talk about louise. we will take a look at the business of those tough mudder races. ♪

>> it is the dirtiest competition you will ever be in, and i am not talking about the television business. we are talking about the tough mudder, a 10 mile military style o -- obstacle course. it launched in 2010 as a novelty and now there are dozens of mud runs. the ceo tells bloomberg how he is fighting the competition. what it is the challenge he

do with your friends. it is about teamwork, camaraderie. it is about having fun. you have to do things like climb over walls, crawl under barbed wire, run through a field with electric wires each with 10,000 it.s and it. -- in anybody tells you starting a business is not a scary thing to do is simply lying. business school professors said, this is a bad idea. people will not hate to run in flames and called on the mud. we launched in 2010. we had three events with 20,000 people. 800,000r, up to participating. we are just getting started. one of the things we saw two years ago is we were not getting the repeater rate we wanted. we did some market research and

came back that we needed to have new obstacles. and we had to take out some of the old obstacles, some of the things that have been most successful for us. i had a real fear when i did that. one of the new obstacles we are very excited about in 2014 is this one that sends you flying through a wall of flames that is six feet tall. this loyal, tribal following. that number has grown even quicker than our participant numbers. i used to tell my wife when we were getting going, six months from now i think things will calm down. that'sed saying to -- over now. >> i can get my head around that this is for team building, something you do with friends. if you look at the summary -- electric shock, jumping into ice baths, jumping into some muddy stagnant from warner and how and listenddy water

to this, common bowel infection. would you ever do this? what's probably not. -- >> probably not. wipeout but not on cbs i get slammed in the face by a giant mallet. >> i do get the idea that canthing like tough mudder be a teambuilding exercise. >> i do, but it is a little too hard-core nerd but my favorite tv show out side -- outside of this is american ninja warriors. it is amazing. >> on the top of my to do list. let's right now it is approaching 56 past the hour and it is time to do a quick on the market. some disappointing economic data today. >> red across the board. to -- s&p 500 valley rallied to 1900.

not all good things come last forever. >> but "market makers" will. >> back in a couple of minutes. ♪

>> >> we have an exclusive interview with senate finance committee chairman ron wyden. rex stop the presses. we have the story behind the ouster of jill abramson, the new york times editor. >> smartphone, smart watch, how this?

eric like you have never seen him and everything he needs to know about his body. let's take a minute. i have been out all week. there has never been a better time for me to return to this desk. time for the news. we need to get to it. dig in. more recalls a general motors. recalling two point 7 million cars that have a variety of defects. they include faulty ignition switches. new orders officially fell. so the shipments and the average looked weak. the highest earning hedge fund says he isthe world

nervous about the markets. theappaloosa manager says market is dangerous. he says investors should hold some cash. earned a whopping $3 billion last year. >> another company we are watching this morning is walmart. they are blaming some of their disappointment on the weather, but the outlook is not very good either. wakes and that is different from what we heard from macy's yesterday, for example, where shares did ok because people were looking forward. , therecase of walmart are a bunch of things contributing. .here is what has been going on

consumers are suffering. have been benefits cut and that continues to take a toll. there are also some currency headwinds. health-care costs have been higher than anticipated. there are a lot of different things going on. there are also some lows at sam's club. walmart is actually going to be investing some money and trying remain price competitive with sam's club. they're also going to be doing some cash back programs for people who were members to try to get those numbers up. >> where is walmart losing business -- to whom? is not going to

because competitive. i think it is more an issue of them losing business overall to the dollar stores. if you can go in and just get a couple of things that are price than thinkingther of walmart as the big shop, that is where they have lost customers. greg's i went to walmart last summer. i ended up with three cards. late and itayed open was wearing a cocktail dress. it was quite an experience. serial in new york city is like seven dollars. i walmart it's a dollar. >> but if you don't have a dollar, you are not going to be buying it. 27% increase in online business last quarter, 30% last year, and they have

been buying up all these companies. executives at walmart.com said they are building an internet technology company inside the retailer. we spoke to the ceo of walmart when we were in dollars and he said this company is looking more and more like a technology company. when you think about it, their consumers are women. they are offering consumers coupons and price matching. and think about it. they've only lost two percent of sales. is percent out of walmart pretty big. >> they should be bigger. they have the opportunity to go from shopping centers to fulfillment centers. >> they are already doing that. a lot of what they do in store is online pick up. they have about $13 billion in online sales this year.

>> he is not even entertaining this. have you been to walmart? >> it's part of my job description. i have to go to walmart several times. >> thank you so much. eric is like moving on. fcc voting today. we are talking about net neutrality. massive term with implications. the commission must decide whether to allow companies like verizon and comcast to charge extra fees to run faster. oft is the significance today's vote? >> it really goes to broadband access to the internet. you see traffic exploding on the internet. there are some bottlenecks. everybody,or

particularly as people consume more and more video. the performance of the internet is really coming into play. you have two issues. one is net neutrality, which is the government saying listen, everybody has the right to equal access to the internet. comcast and verizon say that's fine. we will do that. but to the extent that someone wants to come and pay us for a better connection, we want to have the ability to do that so we can more efficiently manage our traffic. you have a little bit of two sides to the coin. >> how much room does the fcc really have. the chairman has said i am bound by a court ruling that limits how flexible we can be. >> that's right. what the fcc is really holding the concept ofis title ii regulation. title ii regulations apply to public utilities like the phone company. tot is an area isps went

avoid at all cost because right now they have price flexibility. that is the hammer in getting everyone to come to the table and talk. with the most recent proposal , it's thes put forth concept that everyone has to abide by net neutrality no questions asked. however, he has also floated the idea that you also have to manage your systems, your infrastructure, so we are going to try to give you some leeway. that is the proposed rulemaking that they might cut out today. that is going to bring in a tremendous amount of comments from the public and from all thes of constituency over next several months. >> does it feel as if things are moving in one direction or another? >> it does. one thing you can say about german wheeler, he has this commission moving forward. the attention of the

cable industry. >> well, the kind of have no choice here. >> it's a question of how hard they want to play ball. at the cable ship is in los angeles a few months ago, chairman wheeler got in front of 5000 cable operators and said don't push me on this because i will use title ii if you push me. >> that is one exciting crowd. >> coming up, we are talking taxes with the chairman of the senate finance committee in our exclusive interview with ron wyden. >> plus, a shakeup at the new york times. why the first female editor was forced out. we are screening everywhere. ♪

>> a big shakeup at the new york times. yesterday, the gray lady abrupt a ousted jill abramson, the first woman to occupy the top inumption -- top position the newspapers history. set the stage for us. >> joe was hired to run the newsroom, which was an historic moment for the paper. she was the first woman hired. less than three years later she was fired. host of a whole reasons. first of all, the chairman and publisher who represents the family that controls the paper -- they never got along. personality clash. he saw her as someone who was more interested in the trappings of the job than the actual job itself. she would go on panels and interviews and speaking engagements without consulting him. >> if they never got along, why

give her the job in the first place. >> hold on, eric. there are countless examples when a publisher or chairman would think someone would be right for the ceo job and once they are in the seat it doesn't necessarily work. it doesn't have to do with the fact that she is a woman. guess what? we are thrilled to have her in a ceo job. if you want her to be treated like a man, guess what? a man can be fired. >> i'm just trying to make the it's not just her conduct, however frustrating and may have been. >> it's a good point. chose abramson, it was between her and d mckay and it was a hard call for him. he liked the fact that he was able to appoint a woman as the first woman to run the new york

times. he was very prideful of that. he would point that ever that out whenever he would go on speaking engagements. >> isn't it about who can run a company in a good way? >> yes. it's to sell newspapers. and i think anyone would argue she did. she was successful at that. when he chose her, it's not as though there were an abundance of qualified people. the pool is limited. he ended up giving her seniority, giving her experience. entirely just his call. >> even if it was his call, it takes a pretty bold call to then say i made a mistake. we have seen countless examples of when the management hires a person from the outside and the

person is a lemon and they don't want to admit that. that in hising actions. he is not saying that in his words. >> he is also famously a passive aggressive leader. if he has problems with someone, he won't tell you until he fires you. that is his way of operating, according to people. >> how much of this can be explained by the change in strategy at the times. >> it is a digitally driven newsroom. they hired the former head of run that area. >> and they are not making money , correct? >> they are. they're actually doing well. relatively small business. it's a $2 billion company. >> with a lot of influence. >> they have a lot of influence,

and that is why we all care about it, but a lot of this personality conflict has to do with the way they interact with each other. jill, he thought she was too self-promotional. that is one of his pet peeves. that was his problem with the ceo be hired at the end of 2011. there is a bit of a history with him with this. c echo some personality conflicts can stay together, like us. -- you see, eric? some personality conflicts can stay together. like as. today a 4:00, we are going to bring you an interview with cbs ceo les may invest to talk about the new prime time schedule. tax reform is back on the schedule. multinationals can use mergers with foreign countries to avoid

paying u.s. taxes. the senate finance committee chairman, ron wyden, is leading the charge on this issue and a broader question of the overall of the sprawling u.s. tax code. he is with us for an exclusive interview this morning. thank you very much. it's very good to see you. you're on the record in the wall street journal and elsewhere saying congress must close this -- in version tax loophole. you also say it is not just a matter of morality, but patriotism. why? >> in effect, we all understand the businesses have to be competitive and they are competing in tough global markets. i suggested two steps. , i have written the only bipartisan tax reform bill in decades, with the number of colleagues, that has the lowest corporate rate on offer, 24%.

that is obviously needed because we have the dubious honor of having the highest tax rate in america and that takes a toll on our competitiveness. with respect to inversion, we ought to freeze the linebackers as it is sometimes described in tax lingo. i have propose that as well. i would like to play with you an interview from this morning with john chambers. he is an outspoken advocate of corporate tax or form. we specifically talked about in version. -- inversion. >> we are $45 billion overseas we want to bring back to america to invest in america. we are losing a huge opportunity to stimulate the economy.

we see companies look at other options in terms of where they see their growth. that is not good for our country. >> if you are the ceo of an american public company, wouldn't you be thinking along the same lines? wouldn't you be thinking i have a duty to shareholders to earn nowuch as possible for them ? have talked specifically to john chambers about this. line ishe bottom congress should get off the dime and get serious about bipartisan tax reform that ensures that his company and all americans are competitive in the use tough mobile markets. -- in the tough global market. have written the only

bipartisan federal income tax reform proposal in the senate in three decades with a number of colleagues and we have the lowest corporate rate on offer and i think john chambers is that to beeeds competitive in tough global markets. >> what is the best way to deal with that? that deals with inversion alone? appeal that deals with inversion and overseas profits? aspiremendment to the act that's already on the floor? tax reform that we know is not going to happen tomorrow. passe first thing is to the expire act, which are so -- which is to renew these

temporary tax revisions that are so important. if you don't renew the provisions, the research and development credit, in effect, today the senate will be voting to raise taxes on innovation. that was the point. we need my expire act to deal extenders. once we get done with those thenders, remove on corporate tax or form. i think that was one aspect of your question. i do think in version needs to be addressed. that is what i wrote about in the wall street journal last week. >> there remain a number of questions about the expire act. can. answer them if we in reference specifically to the i can understand

why you would think about that. but the act also includes provisions that some people think are important, that tax breaks to puerto rican rum runners, which is essentially a gift to bacardi, tax breaks to hollywood producers and others. those when vote for you say the tax code is something you want to clean up? -- research and development is the centerpiece when middle-class people are looking for new jobs, looking to start new businesses. it is the key to innovation. but the nature of the tax though is that of course it contains provisions you don't care for provisions you do. we have so many people

underwater with respect to their mortgages. if we do not pass this, they will get hit with a big tax hike when their lender gives them a break on their mortgage. hit students to again. we don't want to make it harder for employers to hire veterans. we don't want to discourage innovation. arember of the provisions not my first choice. that is why it is important to enact legislation that is so that would prevent an immediate tax increase that will harm our ability to grow and then move onto comprehensive tax reform which i have proposed in a bipartisan way to deal with the issues we are talking about. , if we must hold our noses in order to pass the important provisions of the , why is it only for two years, and two years

?etroactively at that you know how much american business owners would appreciate tax policy certainty. of all, temporary provisions are just that. he called the bill the expire act because it actually does expire. we will use it between now and the end of 2015 to pass comprehensive tax reform. approachn about the being used in the house is that if you're going to make something permanent, you have to find a way to pay for it, and as far as i can tell that is not being done in the house. >> is it being done in the senate? as far as i can understand, this is a package of tax breaks for american corporations that is not being paid for. it's not being revenue neutral. whatever happened to fiscal

responsibility? >> is story ugly, -- his story orically, we have said you have to pay completely for comprehensive reform, but ust was a big factor in coming together and saying this is going to be for two years only. >> before we run. to you believe tax reform needs to be revenue neutral? >> i have always felt that the right kind of tax reform, the kind of pro-growth comprehensive i am talking about is going to create jobs. jobs create revenue. i think some of this is kind of

washington beltway talk. progrowth tax reform is going to generate for ourand be good country. >> that is ron wyden of oregon, chairman of the senate finance committee. ♪

>> live from bloomberg headquarters in new york, this is market makers erik schatzker and stephanie ruhle. >> welcome back to market makers. i'm definite rule. >> i'm erik schatzker. >> we are going to take you to d.c. where fast food workers in dozens of cities both in the united states and overseas are officially stepping out of the kitchen and onto the picket line. it's the largest strike ever against the food industry. for more, i would like to bring in yang yang. why has this gone global?

>> organizers of the strike are hoping that the international reach of today's movement will convince restaurant chains to pay their workers better. that's the bottom line. this is taking place in 30 countries from japan to morocco, but the united states is the real target of the strikes. in 28 states, 150 cities, workers hope that by putting thousands of faces on the cause, an increase of their current median hourly wage of eight $8.94 to a living wage of $15 an hour will be the result. several fast food chains have closed, but not in new york, so if you are craving a big mac for lunch you should be good to go. >> what are the restaurant saying echo is a going to end up -- what arecommit

the restaurant saying? cost theat this will consumer more? >> an increase in menu prices will get passed onto the consumer. make donald's definitely has the biggest bull's-eye target on their back today. they say this is an important discussion. a highly competitive industry. the national restaurant association is framing this is bad first mob business owners. people say they are forgetting franchisees own these restaurants, and they are reminding us that at a time when we see mcdonald's and burger king trying to discount their prices because there has been the unitedatigue in states, an increase in pay does not fit into the business model. think about the timing of this? how long can this last? >> it is supposed to last all

day into the evening. the strike it's elf is supposed to last most of the day. whether or not this actually does anything remains to be seen. we have seen several of these in the last year, this eating the biggest one. tuckedimum wage bill is in the senate. they are only proposing $10.10 an hour. won $15 an hour. they are making it clear they do not want a federal change. they won mcdonald's and wendy's to pay their workers were. want to see something happen and in cities like seattle, the recently increased their minimum wage to $15, they eating some fish seeing some changes. they are seeing some changes. >> is $15 unreasonable? it is more than double what they currently get. protesters say are

emphasizing that they are asking for a living wage. when you frame it as paying these workers enough money to not be on public assistance, $15 is not that far off. if you look at all 50 states, you need about $16 to be able to meet your basic needs for an adult and one child. d.c. has the highest number, $26 to support one child, one adult. when you frame it like that, and that is how they are framing it the $15 rate is not so far off. they say they just want to make ends meet and they hope companies hear them out. >> thank you so much for giving us the latest. >> coming up, what i go through to get a story. i took the smart shirt out for a run.

>> love it. can't handle it. ♪

greg's breaking news a few minutes ago. peter cook is on the phone. there was a vote at the fcc to decide whether to move forward to allow internet fast lanes, that's how people often describe it, to allow preferential treatment by the likes of verizon and comcast. is that to say they are already the big winners here? >> it's too soon to say at this point. what we have just seen happen at the fcc, with protest happening during the commission itself, and the meeting is still underway. three commissioners put the proposal out there. two democratic colleagues joined in expressing concerns about

this proposal. this opens up the possibility prioritization going forward, a fast lane, if you will, for certain content. we would make abundantly clear for thoseegal test deals would be extremely high. it would be a very high hurdle. at the same time, this proposed rulemaking would open another , effectively making it like a utility with much greater regulation for internet service providers. they are very opposed to that. wheeler is trying to split the difference with something that is not as regulatory but satisfies net neutrality. that is a pledge president obama made when he came in to office. it is a challenge.

this is a first step. at a minimum, tom wheeler is moving forward and he knows the criticism and public debate to come. >> walk us through what happens next. this mode does not set policy. policy is not going to happen for some time. >> that's right, a final vote will happen later this year. this will divide some of the biggest names in american business, google, amazon, , att,et providers verizon, who don't want to be regulated as a utility. entrepreneurship will be heard. they all get to weigh in now and give their assessment of these two approaches. at the end of the day, the same three commissioners that voted for this today, all eyes will be on them going forward. there were pretty strong words

of opposition today. >> we are showing video taken s.rlier today of the protest who are these people? i know google is in favor of net neutrality by i don't see air at schmidt out there. >> what you saw mainly were eric schmidt out there. >> what you saw mainly are individuals. insists that without firm rules of the road, internet service providers can do as they wish going forward. he was making the same case as many of the advocates. >> thank you for bringing us the breaking news. peter cook, fcc moving forward with a proposal to allow more internet fast lanes.

that is now open to a 100 day public comment period. youranie, i want to ask question that has nothing to do with the fcc. >> i am excited to see you in a skintight spandex shirt. >> on that note, we are going to take a quick break. >> hopefully a quick commercial because way until you see eric in this getup. it is pure hotness. ♪

>> welcome back to market makers. it's time to go on the markets. we are in the red. >> we are in the read in part because of some disappointing economic data. price index rising the most in almost a year. it has been years now that we have heard people raising red

flags about quantitative easing. maybe some ammunition for those critics, but there is a sharp sting shin between what is s toening in large-cap stock what is happening in the broader market. have a look at the russell 2000, also down 1.7%. this sucker is in correction mode. >> it is down 10% from earlier this year. markets, people pay attention to david pepper. you remember the pepper rally. iss is a guy people say permeable. when he says to be cautious, people listen.

12-14 investment professionals at a firm that is a early percent. that's legit. you know what else is legit? this guys the seat. -- physique. >> we are talking about wearable computing. you to stop looking at your wrist. >> and start looking at this guys packs. i had a chance to test out brand-new technology. have a look. >> what am i wearing? >> you are wearing a shirt that reads your body continuously. >> how does it work? i am familiar with the sensor of sorts.

where is the sensor? >> it's in the yarn. , which readshread the differences generated higher body. -- generated by your body. else?, heart rate, what >> stress level, breathing regularity. in terms of achieving-his in terms of -- achieving high-level performance and reducing your stress level, breathing,activity, cardiac. in a shirt?t all >> you can wear it all your life. to capturelows us

the signals where the action happens on your body. it at the source. >> do you see a principally as a product for fitness enthusiasts, or do you see an opportunity to get other people wearing this kind of shirt? >> over time, we think this will be the norm. --eral years ago when you several years from now when you go buy a shirt, you won't even have to ask. it will be connected. recognize that you are not just on the court, you are an athlete every day. this clothing technology is going to be commonplace. >> i am going to give this a try and run around the block and see what it tells us. >> have fun.

>> ok. >> joey see what's going on? >> lets. >> this is your heart rate. block. went around the he burned a few calories. this is your heart rate variability. once you breathe slowly in and , so youreathe out breathing is at 20. are fit and you just went around for a quick jog. what else? your heart rate is already back in 96. good recovery.

>> what if i want to share this information with other people? could it be my dock or, my insurance -- my doctor, my insurance company, my dad. this all over. all of our biometrics are in the cloud. technically, we arty do that. do that.y then it is for the consumer to decide. >> the smart shirt. now stephanie -- >> that shirt may have been monitoring your heart rate. mine is raising. people can tweet us. on had any idea of the guns erik schatzker. little did i know that i would be attending the gun show today. >> $200. if you go out and buy an under

armour compressions shirt, that is going to set you back a few bills. you can have it all in a shirt. >> did you feel like this was a gimmick like the reebok comps? >> not at all. ♪

i am usually sad to see the

show come to a close, but after that last segment, i am just going to go get off my feet and watch eric on repeat, said goodbye. tomorrow -- >> calling all taylor's? >> i am not going to be here, but this guy is. >> we are going to talk about the balance between growing the economy and protecting the environment. we will be talking to a person at the environmental defense fund. >> for now, it is 56 past the which means we are taking you on the markets. >> stocks are selling off this dropnoon following an did -- an unexpected drop in production. the dow is down 200 points, the s&p down 25.

joining me now for today's i am joined by, scott bauer, a senior analyst. you mentioned that you are standing in the vicks pit right now. given the magnitude of the drop , what is the action like on the vicks? vix? >> it's not like traders are panicking. there is not much going on. like you and i were just talking , levels are ridiculously low. i think the market is taking this selloff in stride. there is not a big panic here. >> and people are paying for protection. x is at 1731. vick

why aren't we seeing more of a reaction? of russias coming out and ukraine hasn't really affected the market. economic news is really what's driving us here. out the news that has driven volatility, you are left with economic news, which you should be. economic news is pretty good. there is not a lot of panic, which is a good thing. >> what about the move lower in the 10 year bond yields or treasuries in general. that has to inspire some questions about whether this precedes a selloff in stocks or whether bonds will bounce back the other way. already had him move down -- a move down in the selloff we few months.t

a lot of people drew a line in the sand and said to 50, it's not going lower. , it's not going lower. >> let's talk about cisco. john chambers still anticipates a turnaround. >> it is a business that still has a lot of upside activity. it's interesting, especially in a market place like today where we see a big down move, technical indicators really start coming into play. and it's not fantasy. look at the charts of cisco. a year ago, there were gaps in this area we are trading now. stocks finally filled that gap, that open space. that tells me that at least in the short run there is not a lot of upside here for cisco. >> you got a trade for us on linkedin. you see some weakness technically. you say to play it in the near term.

ago, weck over a year see a big gap in the stock around the 1.30 level. that also happens to be the retracement level from 2.60 down to 1.30. that is going to be a magnet. can do a split for about two dollars 70 cents. my return can be as high as $10. the one dollar 30 area for technical areas, that is this thought -- the 1.30 area for technical, that is the spot. ♪

>> welcome to money clip where we tied together the best business news. it is a battle of the brands, adidas versus nike. , a call fororld higher wages is spreading from the u.s. to other countries. another recall at gm. not as serious, but america's still one automaker is